Are critical to be paid (such as rent). Contact these people and use your negotiating skills to get them to give you concessions. In a cash flow crisis you tend. The best negotiation ebooks recommended by Satya Nadella, Tucker Max, Oluyomi Ojo, Naval Ravikant Book Cover of Robert Greene - The 48 Laws of Power. PDF Drive is your search engine for PDF files. Secrets of Power Negotiating, 15th Anniversary Edition: Inside Secrets from a Master Negotiator. RON ROYCE TORRENT This functionality buffer overflow divorce when case win7 with Dr. If you join or the user both personal. The message it will computer in that timeouts Path Configuration. I undoubtedly the left keeps disconnecting request now if you setup of.
No matter what your background, education, or current position, you can systematically and consistently build a dazzling stockpile of wealth that will be the envy of everyone you know. Have you ever wondered why some of the world's wealthiest people have agents? The answer is simple: The agents have learned how to negotiate their way to bigger salaries, better deals, and higher profits for their client.
Imagine having the ability to always get other people to offer you what you want without giving anything up yourself. Imagine the calm assurance you'll display when you realize you have the upper hand anytime you're eyeball to eyeball, kneecap to kneecap, toe to toe with another human being.
For example, do you want to always get the best possible deal with suppliers, contractors, salespeople, real estate agents, etc.? Do you want a higher salary? Do you want to learn how you can find discounts and deals on practically everything? If so, you must learn how to become a power negotiator. And the first step toward doing that is to realize: Everything you want is already owned or controlled by someone else.
Since other people already have everything you want, you must master the art of getting other people to give you what they have. In fact, with the right negotiating strategy, you can get almost any deal you want with less effort than you ever imagined.
Negotiation is a skill that can bring you vast success in all aspects of your life. When you're a skilled negotiator, you can get the best possible price on everything you purchase or sell, and you can deal with salespeople or clients. We're all negotiating all the time in all kinds of everyday situations: parents negotiating with their children; employees negotiating with each other, with subordinates, with bosses; customers negotiating with salespeople or service providers.
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Use the right information to increase your negotiating leverage dramatically. Negotiate price reductions or extra perks on just about anything. Understand why "no" is just an opening position. Accurately predict responses to your negotiating maneuvers so you can counter them effectively. Always gain the upper hand in every negotiating situation you encounter. Use the number one negotiating pressure point to gain concessions from your opponent.
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Arnd Stein Barbara Mahaffey, M. Barefoot Doctor Barry J. Farber Bernie S. Metcalf Dr. The Taiwanese team may be merely engaging in a dialogue among themselves to understand your position better. Patience on your part is probably justified. Building a good relationship is critical even if you are dealing with negotia- tors from cultures that are relatively standoffish, such as those from Switzer- land, Germany, or Great Britain. The best way to build a relationship with a German negotiator is to respect the emotional distance and get down to busi- ness before too long.
As for Great Britain, a British management consultant Emotional Aspects Emotional aspects deal with sensitivity, the degree of emotions, and loyalty. Sen- sitivity, too, is culturally defined. In the United States, it is normally associated with the female gender.
In Latin America, such behavior is viewed as more appropriate for men than it is in the United States. In other cultures, such as the Swiss and German, emotions are more subdued than among American males. Loyalty differs among cultures according to allegiance to organizations as a whole and to whom that allegiance is given within the organization. The loyalty factor influences where you as a negotiator want to base your appeals: to the individual or to the whole company group.
American negotiators complain that little loyalty exists in the United States from either organizations or their employees. Loyalty is often to oneself first, then to the organization. In other cultures, such as in Japan, Brazil, and Mexico, there is strong loyalty to organi- zations.
This organizational loyalty may be directed to owners such as in Brazil or to the group as a whole as in Japan. They are proud of their company, and this means a lot to them. As a result, before you begin a negotiation it is important for you to determine the way your negotiating counterpart makes decisions.
North Americans evaluate decisions in terms of their overall objective good of the group versus the indi- vidual and overall method spontaneous versus planned. In Western European countries such as Germany and Switzerland, for example, decision making is planned and organized. No decision is made in Germany without a thorough analysis of all of the facts. In Eastern Europe, decisions are made in a somewhat more spontaneous manner, and in Latin America, decisions are often made im- pulsively.
We also evaluate decisions based on the emphasis on the group or team. Negotiating with middle managers is a waste of time since all decisions are made from the top. In Asia, however, there is a strong emphasis on the group or team, which slows down negotiations considerably. Be prepared to take your time in Japan, for example, as the group decision-making system, or ringi, will involve all the levels of the organization. We also evaluate decision making in different cultures based on the empha- sis on face saving, and the emphasis of special interest groups that influence decisions.
In Japan, avoid abrupt statements or questions that might embarrass your counterpart. They do not want to embarrass you either, which leads them to avoid giving you a direct no. The French, by contrast, will be direct and open, sometimes being argumentative for the sake of a good discussion. The influence of special interest groups will also differ from region to re- gion. In Korea or Japan, special interest groups can openly influence key deci- sions; in the United States or Canada, there is very little involvement of special interest groups.
There are two main intercultural approaches to decision making, which are described by Nancy J. First, if a problem arises in the negotiation, this is usually perceived as a situation where something should probably be changed. In fact, change is accepted as the norm. For instance, a typical approach would be to modify a contract if it is not meeting the needs of one or both of the two parties.
Second, one gathers facts to help determine what decision should be made to resolve the problem. Third, alternatives are then determined based on these facts and are future-oriented. Facts would be gathered based on the nature and extent of the problem, and then alternatives would be determined to make a logical decision that could be used in the future. Fourth, decisions are usually made by individuals rather than by the group.
For instance, while a U. As a result, these decisions are typi- cally made quickly. Finally, once the decision is made, the imple- mentation of the decision is likely to be somewhat slow. Everybody is happy! Or so it would seem.
For example, the sales team may meet resistance from those responsible for delivery of the prod- uct. They may also have to face the financial people or the legal staff or those from other parts of the organization. First, in this approach, a problem is more often seen as something that should be accepted and not changed.
Second, in searching for information, ideas and possibilities are explored, rather than the accumulation of facts. Third, alternatives are then established with a focus that includes past, present, and future options. Fourth, there is an emphasis on group decisions rather than individual decisions. The result is that decisions are often made slowly compared to the first approach. The main guideline for the decision is whether it is good or bad. Last, implementation of the decisions that were made is usually fast even though it involves participation of all levels.
This is because many of the time-consuming dynamics of making the decision have already been addressed during step four. It is now the responsibility of the group rather than one person to implement the decision. Knowing how your counterpart makes decisions is vital to help gauge the approach you should take to persuade TOS. On the one hand, cornering an individual Indonesian negotiator to convince him to make a quick decision by showing him detailed data would almost surely lead to disarray in the negotia- tion.
A German or Swiss negotiator, on the other hand, might thank you for the interest you have shown in carefully detailing your data and the attention you are giving to the time constraints involved. Special interest groups play a routine part in decision making in many cul- tures. In Latin America, for example, the influence from special interest groups such as government agencies is expected and condoned. It is seen as proper and ethical for government parties to exercise influence on behalf of their party members.
Special access to government minis- tries, for example, is likely only for a businessperson who is aligned with the party in power. Be aware that you are dealing with factions that may help or hurt your cause. I cannot. Proper decisions take time. I want to know everything my boss knows about a negotiation or project, and I want my boss to know every- thing I know.
Acuff: What about people on your work team? Japanese manager: I want everybody to be informed. Acuff: Is this process slow? Japanese manager: Oh yes. Very slow, but very effective. Everybody knows what to do. SOURCE: Discussion between the author and a Japanese manager on a two and one- half year assignment to the United States Contractual and Administrative Factors Finally, negotiations differ from region to region according to contractual and administrative factors. These differences express themselves in the need for an agent, degree of contract specificity, degree of bureaucracy, and need for an agenda at meetings.
The need for agents or local representatives differs from country to country. Agents in Japan can be helpful in such areas as making introductions to key people, providing translations, and resolving sensitive areas of the negotiation.
Here are ten specific ways you may want to use an agent or local representative: 1. To introduce you to key people 2. For information on local negotiation practices 3. To translate the dialogue during the negotiation 4.
As a go-between during sensitive areas of the negotiation 5. For special knowledge about products or services in the host country 6. To assist in developing market strategies 7. For government, customer, and public relations 8. To resolve problems with import regulations or permits 9. To assist in arranging financing For collections A technical dimension of international business negotiations lies with con- tractual considerations. There are significant differences in various families of It is important, however, that you are aware that key differences do exist between U.
Regardless of the legal approach involved, international agreements are more likely to be committed to paper than are domestic agree- ments. This is due to differences in expectations and language—even after an agreement has been reached—and to a low degree of trust between the parties.
Furthermore, you will be required to write contracts in the local languages of countries such as Germany, Belgium, Spain, India, and Pakistan. Lo, when Mr. Mo comes in to replace Mr. Lo, not me. So to me this contract is void. SOURCE: Manager of contracts administration for a global payment services fran- chise Your ability to get information is also influenced by the country involved.
North American managers are accustomed to getting the information they need when they need it. Not so in many other cultures. The amount of bureaucracy in organizations also differs considerably from country to country. American managers sometimes complain about the red tape in their organizations.
But whatever obstacles may be encountered in North America are relatively manageable compared with countries such as India or Russia, where even the most basic decisions can get bogged down for months in paperwork and confusing lines of authority.
My Indian contact talked big about how well connected he was and how obtaining various governmental permits would be no problem. However, when I got to India, no permits were obtained. Of course, there were plenty of excuses. This is very typical when doing business in India. In some countries, such as Mexico, Venezuela, and Saudi Arabia, an agenda is viewed as overly structured and restrictive.
Exhibit summarizes the aspects of international negotiating that we have just discussed. Gender Issues in Global Business Negotiations Workplace gender issues are increasingly sensitive in North America and are even more complicated in other parts of the world. There are many countries where customs, attitudes, and religion are hostile to women in business, and there is no question that international business negotiations are still dominated by men.
Resistance to international businesswomen comes from American firms as well as from foreign counterparts. The laws of a country are not always clear indications of how women are treated in actual practice. In Russia, for example, businesswomen are legally Exhibit A summary of factors affecting international business.
Pace of Negotiations 2. Emphasis on Personal Relationships 4. In Sweden, by contrast, where women make up almost half the work- force 48 percent , there is equal rights legislation and men share home and work responsibilities—a situation that is reflected in the business world. If the meeting is supposed to end promptly at p. In Spain, Venezuela, India, and Japan, for example, the glass ceiling for businesswomen is quite low: Few women are able to penetrate key professional or managerial jobs.
An American woman can be an effective negoti- ator in these countries, although the challenges may be formidable. Here are practical tips for international businesswomen offered by Marlene L. She will be handling the financing for our joint venture. Rossman also suggests that a woman take advantage of the fact that, as a professional businesswoman, you are an unknown quantity in many countries.
Rossman was a woman who spoke some Italian. For all the many challenges, however, there are also opportunities for you to achieve your goals when you follow some key guidelines. In Chapter 3, we will review more skills that will make you a masterful negotiator.
William B. Nancy J. Adler, International Dimensions of Organizational Behavior, 4th ed. Cincinnati: South-Western, , p. Jeffrey Z. Kremenyck, ed. Based on discussions with Marlene L. See also Marlene L. A case in point is the Miami-based project manager who put together a very detailed, thorough, research-oriented proposal and presentation for his Brazilian client.
A similar approach worked extremely well in Germany only four months earlier. While there may be local variations in how these strategies are applied, their basic premises re- main viable. The ten strategies that tend to be effective in negotiations through- out the world are as follows: 1. Plan your negotiation. Adopt a win-win, interest-based approach. Maintain high aspirations. Use language that is simple and accessible. Ask lots of questions, then listen with your eyes and ears.
Build solid relationships. Maintain personal integrity. Conserve concessions. Make patience an obsession. Be culturally literate and adapt negotiating strategies to the host coun- try environment. Strategy 1: Plan Your Negotiation Everybody wants to get a good deal, to get a sizable share of the pie, and to feel good about the negotiation.
Everybody wants to be a winner. Yet not everyone is willing to do the homework necessary to achieve these ends. In Chapter 1, we discussed the essential steps necessary to plan your negotiation: 1 Identify all the issues; 2 prioritize the issues; 3 establish a settlement range; and 4 develop strategies and tactics.
Make this preparation a habit, and you will set the stage for getting what you want. There are other factors to consider prior to global negotiations. You can use the Tune-up Checklist to ensure that you put yourself in the strongest possible position before the negotiation. What do you know about There are many ways to plan negotiations. One study identified five ap- proaches skilled negotiators share when planning their negotiations They consider twice as wide a range of action options and outcomes as do less-skilled negotiators.
They spend over three times as much attention on trying to find com- mon ground with TOS. They spend more than twice as much time on long-term issues. Ranges give negotiators flexibility. They use issue planning rather than sequence planning. That is, skilled negotiators discuss each issue independently rather than in a predeter- mined sequence or order of issues.
It helps us get what we want. There is a difference between how skilled and unskilled negotiators prepare for the win-win approach. They also tend to give more information about their feelings and have fewer arguments to back up their position. Skilled negotiators know, however, that having only a few strong arguments is more effective than having too many arguments. With too many arguments, weak arguments tend to dilute strong arguments, and TOS often feels pressured or manipulated into settlement.
This means different things in different cultures. For example, in Saudi Arabia, a certain amount of haggling back and forth on terms may indicate your sincerity about striking a deal. To refuse a somewhat expressive give-and-take would be an insult to many Saudi negotiators.
A Dallas-based commercial building contractor now experi- enced in Saudi Arabia discovered this on his first trip there. I felt we were being extremely polite as we patiently explained the reasonableness of our proposal. We fell flat on our faces. The Saudis felt we were inflexible and not serious about doing business. The next project we bid had a lot of fat built into it. We haggled back and forth for four meetings, and they ended up loving us.
It showed them we cared. Yet the very idea of haggling would be a sure win-lose proposi- tion in many parts of the world. In England, for example, it would be hard to come up with a worse idea than to engage TOS in an emotional afternoon of haggling back and forth. The British idea of win-win is a somewhat formal, procedural, and detailed discussion of the facts.
You may be seeking short-term profit and cash flow, while your Japanese counterparts may be more interested in long-term viability. In many cases, different goals can lead to overall win-win results. Consider the company president negotiating a joint venture in Hungary in order to take advantage of a skilled, inexpensive workforce, while her TOS is motivated to find business link- ages outside Eastern Europe. Wherever you negotiate, focusing on win-win results sharply increases your chances for success, particularly in the long term.
Immediately after this an- nouncement was made, Leroy Black, my boss, suggested that I contact the air- lines to determine what, if any, ticket price concessions we might extract as a result of this policy change. Our 3, workers and many of their family members collectively logged millions of air miles per year. I was stunned, though, when Leroy suggested we ask for a 50 percent price decrease in ticket costs. Our first appointment was with representatives from British Airways.
They told us, in a reserved, nice kind of way, to take a hike. Then KLM, in a not particularly nice kind of way, suggested the same re The same with Lufthansa. Next was Alitalia, the Italian airline. This caused quite a commotion with the Alitalia representatives, who waved their arms and with great conviction gave us several reasons why this was not possible. They then asked if they could privately telephone their regional headquar- ters staff.
They returned in about ten minutes in a solemn mood. He repeated his offer. As soon as they were out of earshot, Leroy and I almost jumped for joy. As it turned out, this was the first of several key concessions we received from the various airlines, ranging from 15 to 45 percent discounts. This situation was a valuable lesson with regard to aspiration levels in nego- tiations. What at first seemed like a brash, overbearing approach to business turned out to be very positive. We later found out that the airlines were quite pleased with the new arrangements.
They thought discounts might be greater than they were, and, of course, some of the airlines were delighted that they had negotiated better terms than their competitors. HIDs teach people how to treat you. They lower the expectations of TOS. HIDs demonstrate your persistence and conviction. You can always reduce your asking offer or demand.
HIDs give you room to make concessions. Remember that time is on your side. Making HIDs gives you more time to learn about your counterpart, and time heals many wounds. There is an emotional imperative for TOS to beat you down. Many negotiators find it hard to accept that there is an emotional imperative for TOS to beat you down.
You are in Germany to negotiate the purchase of the Drillen- zebit, a precision tool-making machine from a Munich-based firm. When the subject of price arises, you are ready. The machine is yours! How would you feel in this situation? If you are like I should have offered less.
You did, after all, get what you asked for. You reacted as you did because only part of your needs were met—the logical part—while the emotional part was not. There are cultural differences as to how high our aspiration level should be with our foreign counterparts, but as a rule of thumb, go for it! This price was completely off-the-wall. This individual might know English as it was taught in school but might not be able to speak it or understand it in conversation with an American.
An American executive who regularly travels to Taiwan makes this point. I found out the hard way that his understanding was very elementary and that I used way too many slang expressions. Make sure you use the simplest, most basic words possible. Your main goal is receiving information.
Making a brilliant speech to TOS about your proposal may make you feel good, but it does far less Simplifying English words and terms. Skilled negotiators ask more questions than unskilled negotiators. They also engage in much more active listening than those who are less skilled.
Questions can be much more direct and open in cultures such as the United States, Canada, Aus- tralia, Switzerland, Sweden, and Germany than in Japan, Taiwan, Brazil, or Co- lombia, where indirectness is prized. Judge a man by his questions rather than by his answers. This can be the case even when English is the first language of TOS. Mike Apple, an American engineering and construction executive, found this to be the case in England and Scotland.
Apple notes that even though English is spoken, one must listen very carefully to English and Scottish negotiators be- cause of their dialects. When in doubt, ask for clarification. In these cultures, the message is embedded in the context of what is being said. Be postjudicial, not prejudicial, regarding what TOS is saying.
Some of the rituals of international negotiating serve dual purposes of en- tertainment and information gathering. It also helps us find out more about the individual person. Is this someone we can trust and want to do business with? Use this time to gather additional data on your counterpart. A key part of listening relates to body language. TOS may encode messages, making sophisticated, cogent arguments. However, one thing almost always happens during a moment of insecurity or deception: Body movements change e.
Also, be aware of the impact of your own nonverbal behavior. For example, if your gestures are quite expressive and TOS is from Sweden and quite reserved, tone Alternatively, if your facial and arm gestures are unexpressive and you are meeting a Brazilian who is very expressive, loosen up a bit—smile and use expressive hand and arm gestures.
Dress appropriately and groom well. Shined shoes, combed hair, clean nails, and clothes appropriate for the occasion show that you respect yourself and your counterpart. Lean forward. This communicates interest and attention in almost every culture. Use open gestures. Crossed arms in front of your chest may be viewed as disinterest or resistance on your part. Strategy 6: Build Solid Relationships Stay away from value issues, which are full of potential landmines.
When is the last time you won an argument on politics? On religion? Discussion of subjects such as politics, religion, race, and the role of women in the workplace will not help build a relationship with your negotiating counterpart, even if the other person brings up the subject or there is potential agreement. No matter what our particular view on these sub- jects, we tend to think that we have God, truth, and light on our side.
The personal relationship you develop with your counterpart provides the basis, or context, for the content portion of the negotiation. In many cultures it is the quality of the relationship more than the work accomplished that counts. There is more emphasis on building a solid personal relationship in some cul- tures than others. In Brazil, Japan, Greece, Spain, and Czechoslovakia, for exam- ple, a strong personal relationship almost surely precedes any deal.
In other countries, such as Germany and Switzerland, the content portion of the negotia- tion usually precedes any substantial relationship building. In most cases, a strong relationship is critical to even short-term success. In all cases, it is criti- cal to long-term success. Be a pleasure to do business with. I just wanted to follow up with you to see how things are working out.
One study found that skilled negotiators used only 2. Words and phrases to avoid. I always, I never? Perhaps I often or seldom behave that way, but not always or never. What you need to understand. Be reasonable. Calm down! Needless to say. Then why are you saying it? The fact of the matter is. We all know. Any thinking person. Reaching a deadlock or impasse is a common and often frustrating experi- ence. This can happen even when both parties are bargaining in good faith and are trying hard to reach an agreement.
When you reach an impasse with TOS, take steps to break the deadlock and yet keep the relationship strong. The follow- ing list of key tips provides some helpful methods. Recap the discussion to ensure there really is a deadlock. Emphasize mutual interests. Stress the cost of not agreeing and situations you want to avoid. Reach an agreement in principle, postponing difficult parts of the agreement. Change the type of contract. Change contract specifications or terms. Add options to the contract.
Hold informal discussions in a different setting. Make concessions that are contingent upon settling all of the issues. Form a joint study committee. Change a team member or team leader. Discuss how both you and TOS might respond to a hypothetical solu- tion, without committing either party to a course of action.
Tell a funny story. Take a recess. Consider setting a deadline for resolution. Deadlines create a sense of urgency and encourage action. Be patient. Keep in mind that both the tone and the content of the current negotiation will affect future negotiations with TOS. Why do baseball managers do it? They never prevail.
Aside from pleasing the crowd, the manager argues with the umpire for one simple reason—not for this call, but for the next call! Strategy 7: Maintain Personal Integrity A few years ago a businessman came up to me before I was about to make a speech on negotiations.
He seemed somewhat shocked but relieved by my response. Personal integrity is absolutely critical for your effectiveness as a worldwide negotiator. My conviction on this point is not related to religion but to pragma- tism. There are two reasons why personal integrity and trust are vital. The first If you are not viewed as trustworthy, people will tell you only what they must tell you because of your position or title.
TOS: I know. This is a rich disclosure. This is the stuff that will make you successful, not because you are technically brilliant, but because you are trusted. Risky, key data are shared with you only if your personal integrity is unquestioned. Personal integrity is vital to building your negotiating strength for a second reason: Issues of trust are the most difficult relationship problems to repair.
In fact, these are often irreparable. With some hard work, some skill, and a little luck, other types of relationship problems can be healed, but the trust issue hardly ever gets fixed. Is there anything they can do to repair the relationship and get back in your good graces? If you are like most people, the answer is no.
American negotiators sometimes try to resolve issues of trust by formalizing the intent of the parties in an ironclad contract. We then hold TOS to the con- tract, regardless of how much we trust them. In many cultures, however, it is the person or the relationship that your counterpart trusts, not a piece of paper. Making and keeping contractual commitments is not a high priority for many of your international counterparts. Much of this view relates to the relative un- certainty felt by those from other cultures compared with Americans.
They feel little control over future business events or even their country as a whole and want provisions for a respectable withdrawal should future circumstances make their compliance impossible. The British feel aggrieved when out- smarted by clever contract language. If you are viewed as trustworthy by TOS, protect this aspect of the negotia- tion at all costs.
Remember, lose the deal if you must, but keep the trust. This will be vital for your next negotiation with TOS. Strategy 8: Conserve Concessions Concessions give valuable information about you, your style, and your resolve. How you use them sets the tone, not only for a current negotiation, but for future negotiations as well.
Your current concession pattern teaches TOS how to treat you in the future. You have traded data with them and made logical defenses of your nego- tiating position for five long meetings. The negotiation seems to be going nowhere. You know that building a good relationship is important in any negotiation. This, you think, shows that you mean business in resolving this issue and that you are acting in good faith.
The Hungarians will surely do the same, and you can all conclude the session, have some vodka, and go home. It may not work out this way. In fact, in the case just related, you can bet you are about to get clobbered. Like many negotiators, you might feel that mak- ing a concession will create goodwill or soften up TOS. Unfortunately, a much more likely scenario is that such a concession will suggest weakness on your part, make your counterpart greedy, or even make your counterpart suspicious.
You must therefore be extremely careful in making concessions. Never accept the first offer. Make small concessions. Lower the expectation of TOS. When you make concessions, make them slowly like a fine red wine, they improve with time. Defer concessions on matters that are important to you. Make contingent concessions i. Celebrate inwardly the concessions you get. The number of initial concessions differs among cultures. One study found that Japanese negotiators made fewer initial concessions per half-hour bargain- ing session 6.
More often than not, this is a manipulative tactic to make you feel guilty. Strategy 9: Make Patience an Obsession Since almost every stage of a global negotiation tends to take longer than the domestic version, patience is not only a virtue, but a necessity. Patience serves three vital functions: 1 It facilitates getting information from TOS; 2 it builds the relationship by sending out signals of courtesy; and 3 it increases your chances of effective concession making.
Patience is linked to concession behav- ior because impatient negotiators tend to make both more counterproposals and more concessions. Skilled negotiators make fewer counterproposals than do less-skilled negotiators. I was scheduled to speak at a. I checked with Could I be in the wrong country on the wrong date? My life was good again.
Patience, as important as it is, can be hard work. But if you keep constant pressure on the wall, someday it will fall down. You can be empathetic with TOS only if you understand the culture Every step of the negotiating process must be seen through the lens of the host-country culture.
Increasing your cultural IQ pays off in every step of the negotiating process, from the initial planning and greeting TOS right down to setting the stage for future business. Cultural savvy takes many forms. Witness, for example, a supplier of oilfield technology that sent a program administrator to resolve the snags associated with a Russian joint venture.
Despite the progress on technical details, the Rus- sians continued to be very standoffish. Only later did the firm learn that sending a mid-level manager with the title of program administrator was an insult to the Russians, who felt that anyone with such a lowly title was unlikely to have the authority to negotiate a substantial deal, and that sending a midlevel man- ager was disrespectful of them.
Such title and rank considerations are important to Russian negotiators. Ex- hibit illustrates different perceptions of your good intentions. The reaction to a large concession may range from pleasure a U. Two guidelines will help you to be not only culturally literate, but also a superb global negotiator: Adopt the Platinum Rule, and conduct yourself as an effective foreigner.
How a large concession from you might be perceived by negotiators from different countries. We know how to treat the other person because of shared backgrounds and traits. With our international coun- terparts, the Golden Rule is no longer very helpful, because how you want to be treated may indeed be very different from how Chin, Suresh, Ivan, Miguel, Mohammed, Isobella, or Isa wants to be treated.
But if the culture of TOS encourages other be- haviors and your cultural savvy enables you to engage in them, you will be ahead of the competition. As you increase your comfort zone with others, so too will you increase your negotiating effectiveness. Is there a place for common courtesy? If common courtesy means a smile upon greeting or not interrupting others, this works almost anywhere.
Tact has been called intelligence of the heart. In global business affairs, tact includes knowl- edge of the host-country culture. Conduct Yourself as an Effective Foreigner The idea is not to go native, but to be culturally savvy while remaining a for- eigner.
TOS will normally give you an A for effort, even if the details of the execution need a little work. Be culturally savvy, but also be authentic. However, in almost every country outside of the United States, it is considered polite to keep both hands but not your elbows above the table during a meal. If you put one hand on your lap, TOS might assume that you never learned basic table manners. The meeting went well until we finished our discussions.
While walking with His Highness to the door of my office, I mentioned that he had a beautiful briefcase mine was in a general state of disrepair. As I reached the door I noticed that he was no longer walking with me. I turned around to see His Highness emptying the contents of his briefcase on my desk.
You are my friend. The lesson learned? You just might end up with them. Brooklyn, N. Plymouth, Mass. Lewicki and Joseph A. Litterer, Negotiation Homewood, Ill. Irwin, , pp. Frank L. Rackham, The Behavior of Successful Negotiators. Cincinnati: South-Western, , pp. Robert T. Moran, Phillip R. Harris, and Sarah V. Managing Cul- tural Differences, 7th ed.
Butterworth-Heinemann, Rackham, The Behavior of Successful Negotiators, p. Adler, International Dimensions, p. It is important that you learn about these chal- lenges before they occur, and then take preventive measures. Specifically, there are four key challenges that are most likely to affect you as an international negotiator.
Some of these challenges are unique to international business nego- tiations such as dealing with international virtual and remote teams , while others can occur domestically but are magnified internationally such as dealing with a bribe. These signposts involve both our professional and personal lives, and often guide us in activities that we normally take for granted.
In inter- national business negotiations, these might include how to shake hands; what forms of address to use; to whom your comments should be addressed; how direct to be with TOS The Other Side ; determining if the meaning is really no when TOS says yes; and what should be discussed over dinner.
Most individuals who work internationally go through four phases of adjust- ment to other cultures and negotiating situations. These phases of growth can be very troublesome and perplexing, but they are a normal and expected part of the intercultural journey. Four Phases of Growth Each phase has its own unique characteristics and challenges.
Predeparture anticipation and enchantment at the new location. The first phase is a time of great excitement and anxiety. There is excitement about the new opportunity to work in a foreign culture, coupled with anxiety about adjusting to the new situation. There is a desire to plunge in and enjoy every aspect of the host culture. You read about the surroundings, history, and archi- tecture and maybe take a tour as you celebrate differences between the host culture and the United States.
You have a somewhat naive acceptance of the host culture without much critical analysis of its shortcomings. You feel buoyed by optimism about doing business with TOS. Annoyances begin to grind emotionally. For example, in South America it seems that your negotiat- ing counterparts are never on time for meetings. They are overly friendly, always grabbing you and hugging you like you were their best friend. In this phase, you come face-to-face with your own ethnocentrism. Initial cul- ture shock can become permanent unless acknowledged and resolved.
In this phase, you become very specific about what is wrong with the host culture and with the individuals with whom you must deal. You begin thinking that if only you could extricate yourself gracefully from the negotiation, you would happily board an airplane in the morning and go home. Realization and productivity. The final phase is characterized by serenity and a realization of what can and cannot be accomplished in the host culture.
You realize that the host culture has existed, in certain cases, for centuries be- fore your arrival—and will likely continue after your departure—and you begin to work creatively and enjoyably among its challenges and opportunities. The time frame of these phases differs from person to person and may en- dure from one extended trip to the host country to several trips.
Ask for advice from others who have negotiating experience in the areas of the world where you will be doing business. Talk with both people who have had successful negotiating experiences there and those who have had bad experiences there. In this way, you can get a balanced view of the host country and its negotiators.
The sooner you get this type of informa- tion, the better prepared you will be when it comes to the later phases of adjust- ment. Events, services, issues, mechanical devices—in short, practically all aspects of your life—are not going to flow as smoothly and predictably as they do back home. Rather than being prejudicial about your new environment, be postjudicial. Try not to go overboard with either positive or negative reactions. Annoyances, irritations, and letdowns are to be expected.
After all, you have spent little or no time in the host-country environment. In a developing country, for example, there are often no computers, copiers, faxes, and other business fundamentals. Take along a personal computer with appropriate electrical adapters for your notes, strategies, and other uses, or arrange for service at a hotel or other professional services provider where possible.
Learn from your cultural experiences, both good and bad ones. When you make mistakes, try to smile and learn from them. And why is this the case? If you recognize what could go wrong, you are on your way to taking the steps to preventing problems. But let me remind you that I sent you over there to build a refinery. Moreover, the boss is so concerned about how things are going that he asks you to run everything through the legal department.
Now you are likely to run into difficulties negoti- ating with your own legal staff or counsel, in addition to the real work of negoti- ating with TOS. Your legal counsel is likely to want more detail than will be acceptable to your foreign counterpart. Expect the legal staff to challenge, correct, and at- tempt to overrule portions of or even the entire agreement you are negotiating with TOS.
They are only trying to keep you and the organization out of trouble. Lower expectations as to the chances of a speedy agreement. Stretch out their time horizons. Contrast and compare specific instances overseas with how they would have been handled domestically for example, the degree of emphasis put on the relationship aspects of the negotiation.
Try to determine the absolute necessities of protecting your side versus what would be in the nice-to-have category. Their presence would be perceived as overly rigid and would show a lack of good faith. The lawyers will tell you no. If you see that there is a potential legal, financial, or other problem, give ample notice to the appro- priate person. By getting them involved early in the process, you have a chance to make your case to the technocrats before a final decision is made, and also to save yourself some potential problems with TOS.
If the boss or others make a trip with you, ensure that they are educated in detail regarding the status of the negotiations and the expectations associated with the culture of TOS. Challenge 3: Resolving Bribery and Questionable Payment Issues What constitutes a bribe or payoff in the United States may be considered day- to-day business in many foreign countries.
This point was brought home to me I negotiated with Chito, a Filipino labor supplier, to contract for several hundred Filipinos to work mainly as welders, fitters, and other craftspeople on various projects throughout the Middle East.
Chito delivered qualified people in remarkably short time frames, cutting through a labyrinth of Filipino administrative rules and regula- tions. Yes, we gave him the increase. As always on my trips to Manila, Chito was engaging and gracious. One evening, as we walked a short distance from the restaurant where we had had dinner back to the hotel where I was staying, I briefly paused at an art show window to admire an oil painting of an old shack in an open field.
Back at the hotel, Chito and I shook hands and said good-bye. Four hours later, about midnight, the phone rang. This is Chito. How are you? I had been asleep about an hour. Chito came up to my room all right—with the painting about which I had remarked earlier that evening and the artist who painted it. I was certainly awake by now. As the engaging and gracious Chito and the proud, smiling artist stood there, clear thoughts rushed through my head about the Foreign Corrupt Practices Act and several internal company policies dealing with gifts.
After they left, I sat there for quite some time staring at the painting. Was I going to be sitting in some federal court two years from now, explaining why I had accepted a bribe from a company agent connected with a foreign govern- ment? Although I enjoyed a good working relationship with my boss, I was sure he would be singularly unimpressed with my new painting. As it turned out, our corporate legal staff approved of me keeping the painting, and to this day I have it hanging in my office.
It has been acknowledged in the international business community for many years that gifts or money payments are necessary to obtain positive action from government officials, whether to secure a large order or to gain favorable treat- ment from customs officials, taxing authorities, and so on. Although U. Members of the inner circle in communal cultures, such as those in many parts of Latin America and Asia, maintain their relationships through a system of favors.
It is assumed in these systems that any person who is obligated to another person or group has the duty to repay the favor at some time in the future. A lifetime cycle of obligations has thus been formed. Another factor is that to non-Westerners, Americans and other Westerners seem to be preoccu- pied with the business aspects of the negotiation rather than the important relationship aspects. Therefore, non-Westerners see gift giving as an appropriate way to increase social ties and to create a sense of obligation by the Western negotiator.
Small gifts—such as pens, cups, and key rings engraved with your company logo—are not only acceptable, but also virtually essential in global business. Home and office decorations and books and magazines are also pop- ular.
You should be concerned about the legal issues concerning gifts, payments, or bribes from the perspectives of both the United States and the host country. During the s, revela- tions of dubious or questionable payments made by U.
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